US inflation up , dubious growth , budget deficit somewhat reduced but external trading showing same weakness .March 2013 –

The inflation at 2 % with slow economy growth shows stagnation whether we like it or not . The petrol price at retail level is raising to confirm this as american citizens are highly sensible to petrol price because petrol is in the roots of their consumption needs .

Used capacity remains below 80 % and although budget deficit is closing the gap probably because of recent tax moves which impact need yet be fully perceived , the external current account continues to show the need to improve competitiveness .

No surprise that the dolar is gaining ground in a move to keep hold of petrol prices and to compensate for the ailing current account deficit ( external trade ) it is good to see that in the TICs ( capital flows ) the inflows are substantially dominating and growing to quench fiscal disagreement effects between democrats and conservatives

But at the end of the day the same question is on the table . For how long can the US economy be based on external financing ?

Remember that the private and corporate debt is much higher than the economy may bear, specially as unemployment shows a tremendous loss of jobs in the selective manufacturing sectors responsable for the creation of richness which is having a strong influence in the loss of purchase capacity as well as in the income tax revenue .

The US probably needs to review traditional tax structure to favor development of added value ventures and companies and the recovery of a middle class earning salaries between 70.000 and 120.000 $ while GINI indicator is reduced from the current figure of 0.46 .

It does not mean reducing or increasing taxes but establishing a more selective distribution of taxes in sales, income and corporate profit . ( Making money through speculation is not as healthy to real economy than making money through long term added value investments )

Brahmason

Brahmason@gmail.com

Published in: on marzo 15, 2013 at 6:06 pm  Comments (6)  

The URI to TrackBack this entry is: https://brahmason.com/2013/03/15/us-inflation-up-dubious-growth-budget-deficit-somewhat-reduced-but-external-trading-showing-same-weakness-march-2013/trackback/

RSS feed for comments on this post.

6 comentariosDeja un comentario

  1. Why visitors still make use of to read news papers when in this technological world everything is presented on net?

  2. Hi there, I read your new stuff like every week.
    Your story-telling style is awesome, keep doing what you’re doing!

  3. It’s hard to find well-informed people in this particular topic, however, you sound like you know what you’re talking about!
    Thanks

  4. Very good article. I will be experiencing a few of these issues as well.
    .

  5. Your method of telling everything in this article is
    really good, every one be capable of effortlessly understand it, Thanks
    a lot.

  6. Having read this I thought it was extremely informative.

    I appreciate you taking the time and energy to put this informative article
    together. I once again find myself spending a significant
    amount of time both reading and leaving comments. But so what, it was still worthwhile!


Deja una respuesta

Por favor, inicia sesión con uno de estos métodos para publicar tu comentario:

Logo de WordPress.com

Estás comentando usando tu cuenta de WordPress.com. Salir /  Cambiar )

Google photo

Estás comentando usando tu cuenta de Google. Salir /  Cambiar )

Imagen de Twitter

Estás comentando usando tu cuenta de Twitter. Salir /  Cambiar )

Foto de Facebook

Estás comentando usando tu cuenta de Facebook. Salir /  Cambiar )

Conectando a %s

A %d blogueros les gusta esto: